Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Use Excel to solve. 423943.4 and 1091547 is not the answer. the new edition comes out. The publisher estimates that demand for the book during

image text in transcribed

image text in transcribed

Use Excel to solve. 423943.4 and 1091547 is not the answer.

the new edition comes out. The publisher estimates that demand for the book during the next year is governed by the probability distribution in the file P15_31.xlsx. A production run incurs a fixed cost of $10,000 plus a variable cost of $15 per book printed. Books are sold for $120 per book. Any demand that cannot be met incurs a penalty cost of $20 per book, due to loss of goodwill. Up to 500 of any leftover books can be sold to Barnes \& Noble for $35 per book. The publisher is interested in maximizing expected profit. The following printrun sizes are under consideration: 0 (no production run) to 10,000 in increments of 1000 . What decision would you recommend? Use simulation with 1000 replications. Round your answer to the nearest whole number, if necessary. Optimal print size: answers to the nearest whole dollar, if necessary. LowerUpper$$ \begin{tabular}{|r|r|} \hline Demand & Probability \\ \hline 3000 & 0.40 \\ \hline 4000 & 0.20 \\ \hline 6000 & 0.10 \\ \hline 8000 & 0.20 \\ \hline 10000 & 0.10 \\ \hline \end{tabular}

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Curriculum Management Audit

Authors: Larry E. Frase, Fenwick W. English, William K. Poston

1st Edition

0810839318, 9780810839311

More Books

Students also viewed these Accounting questions